SOURCE: Integrated Management Information (IMI Global)

Integrated Management Information (IMI Global)

March 10, 2011 09:00 ET

Integrated Management Information (IMI Global) Reports Record Fourth Quarter and Full Year Financial Results

CASTLE ROCK, CO--(Marketwire - March 10, 2011) - Integrated Management Information, Inc. (IMI Global) (OTCBB: INMG)

2010 revenue up 23% to $3.3 million from $2.7 million in 2009

2010 net income of $328,000 -- $0.02 EPS

2010 adjusted EBITDA of $442,900

Four consecutive quarters of profitability and increasing revenue

Gross margins increase in fourth quarter and full year

Cash from operations up 320% in 2010 to $430,900 vs. $102,700

Integrated Management Information, Inc. (IMI Global) (OTCBB: INMG), a leading provider of verification and Internet solutions for the agricultural/livestock industry under the Where Food Comes From® brand, today announced record financial results for its fourth quarter and full year ended December 31, 2010.

"We are very pleased with our 2010 financial performance in virtually all key financial metrics," said John Saunders, CEO of IMI Global. "In addition to posting four consecutive quarters of profitability and revenue growth, we achieved record high revenue, gross margins and net income for the full year. We also generated record operating cash flow and closed the year with strong cash and working capital positions in excess of $500,000 and $550,000, respectively. We continued to add new customers in 2010 and topped the 6,000-customer threshold late in the year -- a testament to our growing industry reputation for high-value solutions and high-quality customer service. We also launched our Where Food Comes From labeling program and brought our first high-end retailer on board. With demand for our core solutions remaining strong and Where Food Comes From gaining momentum, we believe we're well positioned to continue our revenue and earnings growth and build value for all of our stakeholders."

Full Year Results
Revenue for 2010 increased 23% to $3,274,600 from $2,660,500 in 2009. It was the Company's highest-ever full year revenue total and was attributed to growing demand for the Company's core US Verified offerings as well as new solutions. Third-party verification revenue increased 21% to $2,626,500 from $2,171,100 in 2009. Hardware revenue grew 39% to $648,000 from $466,000 in 2009.

Gross margin for the full year grew by 34% to $1,799,700, or 55% of revenue, from $1,345,800, or 51% of revenue, in 2009.

On a reported basis, selling, general and administrative (SG&A) expense in 2010 declined slightly to $1,440,200 from $1,468,500 in 2009. However, adjusted for a $169,600 bad debt provision taken in the fourth quarter of 2009, SG&A expense in 2009 would have been $1,299,000. Therefore, on an adjusted basis 2010 SG&A expense increased 11% from 2009. As a percentage of revenue, 2010 SG&A expense improved to 44% from 55% (reported) and 49% (adjusted) in 2009. During the year the Company made significant investments in marketing and advertising initiatives related to the Company's Where Food Comes From program that connects consumers with the food supply chain at the point of purchase through an unprecedented level of transparency. The program uses U.S. Department of Agriculture (USDA) Process Verified Programs (PVP) to validate marketing claims. Participating suppliers are then able to market their food products with the Where Food Comes From seal to offer consumers an added level of confidence in the product's attributes. For more information go to www.wherefoodcomesfrom.com

The Company achieved record net income of $327,800, or $0.02 per share, in 2010 versus a net loss of $153,200, or $0.01 per share, in the same period last year -- a positive swing on the bottom line of $481,000.

Fourth Quarter Results
The Company reported revenue of $871,600 in the fourth quarter, up 15% from revenue of $758,600 in the same quarter a year ago. It was IMI Global's fourth consecutive quarter of year-over-year revenue growth. Revenue from verification services, which includes the Company's industry leading USVerified™ solutions, increased 10% to $700,400 from $635,000. Hardware revenue consisting primarily of cattle identification tags increased 44% in the fourth quarter to $171,200 from $118,600 in the same quarter last year.

Gross profit in the fourth quarter increased to $520,500, or 60% of revenue, versus $408,800, or 54% of revenue, in the same quarter last year.

On a reported basis, selling, general and administrative expense declined by 22% in the fourth quarter to $396,900 from $511,000 in the fourth quarter a year ago. However, with the aforementioned $169,600 bad debt adjustment, the 2009 fourth quarter SG&A would have been $341,400.

The Company achieved net income of $116,100, or $0.01 per share, in the fourth quarter as compared with a net loss of $110,900, or $0.01 per share, in the same quarter a year ago. It was the Company's fourth consecutive quarter of profitability.

Balance Sheet Highlights
IMI Global generated $430,900 in cash from operations in 2010, a 320% increase over $102,700 in 2009. Cash and cash equivalents at December 31, 2010, were $513,100, up substantially from $214,300 a year ago. Working capital at 2010 year-end was $555,100, up from $447,200 in the third quarter and $264,000 at the close of 2009.

About IMI Global
Founded in 1995, IMI Global is a USDA Process Verified (PVP) company and is a leading provider of verification and Internet solutions for the agriculture industry. Go to www.IMIGlobal.com for additional information. IMI has worked with some of the largest agricultural organizations in the United States, providing web-based applications for verification and identification as well as a range of consulting services tailored to meet each customer's needs.

CAUTIONARY STATEMENT
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Forward-looking statements are inherently uncertain, and actual events could differ materially from the Company's predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this news release about growth, profitability, potential, leadership, momentum, the demand for, and impact and efficacy of, the Company's products and services on the marketplace are forward-looking statements that are subject to a variety of factors, including availability of capital, personnel and other resources; competition, governmental regulation of the beef industry, the market for beef and other factors. In addition, financial results for the twelve-month periods are not necessarily indicative of future results. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update its forward-looking statements to reflect new information or developments. For a more extensive discussion of the Company's business, please refer to the Company's SEC filings at www.sec.gov.

Integrated Management Information, Inc.
Statements of Operations
                         
    Three months ended     12 Months Ended  
    December 31,     December 31,  
    2010     2009     2010     2009  
                                 
Revenues   $ 871,552     $ 758,590     $ 3,274,566     $ 2,660,530  
Costs of revenue     351,053       349,748       1,474,881       1,314,683  
Gross profit     520,499       408,842       1,799,685       1,345,847  
Selling, general and administrative expenses     396,865       511,032       1,440,229       1,468,537  
Gain on sale of online businesses     -       -       -       (4,000 )
Income (loss) from operations     123,634       (102,190 )     359,456       (118,690 )
Other expense (income):                                
Interest expense     8,144       9,044       33,388       35,507  
Other income, net     (565 )     (360 )     (1,689 )     (1,006 )
Income (loss) before income taxes     116,055       (110,874 )     327,757       (153,191 )
Income taxes     -       -       -       -  
Net income (loss)   $ 116,055     $ (110,874 )   $ 327,757     $ (153,191 )
Net income (loss) per share:                                
Basic   $ 0.01     $ (0.01 )   $ 0.02     $ (0.01 )
Diluted   $ 0.01     $ (0.01 )   $ 0.02     $ (0.01 )
Weighted average shares outstanding:                                
Basic     20,852,052       20,862,079       20,847,311       20,867,150  
Diluted     20,870,364       20,862,079       20,863,845       20,867,150  

 

Integrated Management Information, Inc.            
Balance Sheets            
             
    December 31,     December 31,  
    2010     2009  
ASSETS                
Current Assets:                
Cash and cash equivalents   $ 513,076     $ 214,329  
Accounts receivable, net     222,480       204,596  
Prepaid expenses and other current assets     34,580       65,695  
Total current assets     770,136       484,620  
Property and equipment, net     114,544       134,035  
Intangible assets, net     14,724       655  
Total assets   $ 899,404     $ 619,310  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Current liabilities:                
Accounts payable   $ 172,324     $ 161,049  
Accrued expenses and other current liabilities     33,608       51,115  
Short-term debt and current portion of notes payable     9,130       8,467  
Total current liabilities     215,062       220,631  
Notes payable and other long-term debt     331,687       360,871  
Stockholders' equity:                
Preferred stock     -       -  
Common stock     21,039       20,929  
Additional paid-in capital     3,401,383       3,387,130  
Treasury stock     (47,417 )     (20,144 )
Accumulated deficit     (3,022,350 )     (3,350,107 )
Total stockholders' equity     352,655       37,808  
Total liabilities and stockholders' deficit   $ 899,404     $ 619,310  

Contact Information

  • Company Contacts:

    John Saunders
    Chief Executive Officer
    303-895-3002

    Jay Pfeiffer
    Pfeiffer High Investor Relations, Inc.
    303-393-7044